RBA keeps interest rates steady

The Reserve Bank of Australia has left the official interest rate on hold at 2.5%.

It is the second consecutive month the RBA has decided to leave interest rates unchanged.

RBA Governor Glenn Stevens said in a statement that the Australian economy was growing “a bit below trend over the past year” and that this was expected to continue due to decreased levels of resources investment.

Stevens acknowledged that despite the recent rise in the Australian dollar, it is still about 10% below its position in April.

“A lower level of the currency than seen at present would assist in rebalancing growth in the economy,” Stevens said.

The RBA has also left open the possibility for future cuts.

“The Board will continue to assess the outlook and adjust policy as needed to foster sustainable growth in demand and inflation outcomes consistent with the target,” the statement said.

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